Rhodium closed up by 1.4% to 50.63 on 13 January 2021 and +5.48% on a weekly basis. Rhodium momentum was last calculated at +100.0/100 indicating positive momentum. Rhodium trend is +75.0/100 indicating a positive trend. Rhodium momentum exhaustion is 1.14 indicating Rhodium is neither oversold or overbought. Rhodium RSI is 72.61 .
Rhodium closed at 50.63 on 13 January 2021. Rhodium trend was last calculated at +75.0/100 (range: -100 to +100) indicating a positive trend based on MacroVar models. Rhodium momentum was last calculated at +100.0/100 (range: -100 to +100) indicating positive momentum. Rhodium momentum exhaustion is 1.14 (normal range: -2.5 to +2.5, overbought values: greater than 2.5, oversold values: less than 2.5) indicating Rhodium is neither oversold or overbought. Rhodium RSI was last calculated at 72.61. Rhodium moving averages were last recorded as follows: 1-month moving average: 47.85 in an uptrend , 1-quarter moving average: 43.41 in an uptrend and 1-year moving average: 38.53 in a downtrend. Rhodium annual return was last recorded at None%, daily return was last recorded at 1.4%, and weekly return was last recorded at 5.48%. Rhodium historical 20-day volatility was last recorded at 22.4385%, MacroVar models monitor Rhodium statistics based on historical data since 1970.
Rhodium Trading Signals
MacroVar estimates the following signals: Rhodium momentum, Rhodium trend, Rhodium oscillator, Rhodium RSI and Rhodium returns.
Rhodium MomentumMomentum trading is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVarRhodium momentum signal ranges from -100 to +100. The Rhodium momentum signal is derived as the mean value from 4 calculations for the Rhodium. The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Rhodium return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Rhodium momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Rhodium momentum signal moves from positive to negative value or vice-versa.
Rhodium trendRhodium trend signal ranges from -100 to +100. Rhodium trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Rhodium Closing price vs Rhodium moving average (MA) calculation: If Rhodium is greater than Rhodium MA value is +1, else -1, 2. Rhodium Moving average slope calculation: if current Rhodium moving average is higher than the previous MA, Rhodium upward slope +1, else -1
Rhodium trend model can be used as a trend strength indicator. Rhodium trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Rhodium trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Rhodium 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Rhodium is in an uptrend when Rhodium price is higher than the 52-week moving average and the Rhodium 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Rhodium oscillator and Rhodium RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Rhodium oscillatorThe Rhodium oscillator estimated by MacroVar is the z-score of the current Rhodium price versus Rhodium 1-year simple moving average price. The formula for the Rhodium oscillator is:
Rhodium oscillator = (Current Price – 250 trading days Rhodium simple moving average price) / (250 days Rhodium price standard deviation)
Rhodium oversold conditions
Rhodium is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Rhodium is oversold it is often due for a rebound. Values of the Rhodium oscillator lower than -2.5 signify oversold conditions. It must be noted that the Rhodium oscillator must be analyzed ibn conjunction with the rest of Rhodium quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Rhodium RSI.
Rhodium overbought conditions
Rhodium is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Rhodium is overbought it is often due for a correction. Values of the Rhodium oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Rhodium quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Rhodium RSI indicatorThe RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Rhodium is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. During Rhodium uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Rhodium returnsMacroVar calculates Rhodium returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Rhodium returns = (Rhodium Closing Price – Rhodium Previous Price)/(Rhodium Previous Price)